CBI Urges Freeze On Scottish Council Tax

by Amanda Banks, Tax-News.com, London

27 August 2010

The Confederation of British Industry (CBI) in Scotland has spoken out against proposals to increase council tax.

A council tax freeze was introduced nationwide by the Scottish National Party (SNP) government following 10 consecutive years of above inflation rises in the local levy.

Motions from Gordon Matheson, leader of Scotland’s largest council, to ditch the flagship SNP policy have been rejected by the CBI:

“We support the Scottish government’s council tax freeze. The journey towards a fairer and more acceptable level of council tax must be continued. If not, calls for an even worse local income tax will become loud once again and Scotland’s ambition to be an attractive place in which to live, work and do business will be put at risk,” Iain McMillan, director of CBI Scotland, told the Press and Journal.

The proposal derives from councils' concern over the squeeze on public finances. Councils argue that an increase in taxation would offset cuts in funding for public services.

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